All Forum Posts by: Elias Halvorson

Simple answer, yes, you can and I'll echo what Ravi wrote. 

No painless way. Since you said "assume the loan" I am assuming this is a Gov mortgage ie FHA, VA, or USDA? Assuming the loan would likely be best from a cost/fees (and likely interest rate perspective).

Not in Bama, but I had 4 Section 8 properties in Biloxi. I love section 8. Sometimes the repairs were a bit nit picky, but the clients were great. THey are incentivized to take care of your property or they could lose their section 8. In my experience section 8 tenants were much better than tenants than others. Highly recommend! 

Yeah, I would go with a local credit union or bank - they have the best deals. 

Hi Kwanza, 

It really depends on what type of loan (VA, FHA, Conventional, DSCR, etc). For instance, I'm a veteran and do a lot of VA loans and one bank I work with offers the same rate to veterans with a 685 credit score as they offer for veterans with a 758 credit score. However, for a conventional loan the pricing is significantly different. Typically, 760+ is the top, with maybe 10% of the banks having 780 and above as the highest tier.

What Jeff asks is key. No problem if the salary structure is the same, but if there is any sort of commission income involved, and you need that commission income to qualify for the refi then waiting could cause issues. No one knows the direction of rates. We all hope they go down, but will they and by how much? With tariffs, potential trade wars, and all sorts of economic uncertainty I would probably play it safe and just refinance now. 

It’s already been said by the above but at 2.9%- that’s free money. It would be a huge mistake to pay it off. If you want to invest elsewhere then take that 50k you would’ve paid it off with and use it for a down payment on another home. 

Justin, 

Most of us are happy to help and offer advice, but in order to offer good advice details are usually needed. So much more info needs to be given in order for us to give you decent advice. 

- What is your interest rate on your current mortgage? It wouldnt make much sense to pay it off only to get a HELOC... Refinancing doesnt make much sense unless you have A LOT of equity and are pulling some cash out. You wouldnt want to do a rate/term refinance as you barely owe any money and the title/escrow fees alone would be cost prohibitive. And of course, what are you going to do with the money should you take cash out via a HELOC or a cashout refinance?

I would recommend shopping around, especially with a local mortgage broker. Is this a conventional loan for a refi-cashout on an investment property or is this a DSCR cashout? For conventional refi-cashout these terms are very high. What is your credit score? If this is for a conventional cashout feel free to DM me - I can go over the rates I am seeing. But if you have good credit, and this is a conventional loan on an investment property that is a SFH - you should be getting a lender credit, not charged points at 7.125.